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You're considering an investment in 12-year, $1,000 face value bonds with a 8.50% coupon paid annually and a yield to maturity of 7.50%. The bonds

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You're considering an investment in 12-year, $1,000 face value bonds with a 8.50% coupon paid annually and a yield to maturity of 7.50%. The bonds are callable in three years at a call price of $1,075. If you believe that the bonds will be called how much will you earn? Select one: a. 7.82% b. 7.50% O c 5.63% d. 10.75% O e. 7.88% e

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